Key Takeaways
- Czech National Bank may invest up to $7.3 billion in Bitcoin.
- This allocation would represent 5% of the bank's total reserves.
- The proposal will be presented at a board meeting on Jan. 30.
The Czech National Bank (CNB) is exploring the possibility of adding Bitcoin to its foreign exchange reserves, potentially becoming the first European central bank to do so.
Governor Aleš Michl confirmed he will present the proposal at a board meeting on Jan. 30.
Significant investment scale
If approved, the CNB could allocate around 5% of its reserves—approximately $7.3 billion—to Bitcoin.
André Dragosch, head of research at Bitwise, highlighted the significance of this move, stating that such an investment would be equivalent to about 5.3 months of newly mined Bitcoin supply.
Strategic reserve management
Michl previously indicated interest in Bitcoin as a reserve asset, suggesting that even a small allocation could support diversification efforts.
However, as of Jan. 7, CNB board adviser Janis Aliapulios stated that the bank had no concrete plans for Bitcoin investment, instead focusing on increasing gold reserves to 5% of total assets by 2028.
Cautious approach to implementation
Michl acknowledged that Bitcoin is “worth considering” for a large portfolio but emphasized the need for thorough analysis before a decision is made.
